Crypto Coin vs. Token: Spotting the Difference

Image Credit: ZebPay Feb 15, 2024 By: Bhumi Shrivastava

Operating Platforms

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Purpose and Functionality

[{"selector":"#anim-57961a40-1919-4e23-b757-a1fd4e30d737","keyframes":{"opacity":[0,1]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-45be25e6-92d5-4095-8f91-86defad0f329","keyframes":{"transform":["translate3d(0px, 121.84129%, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3f200487-2380-4306-8b2b-b08dadf16dc1","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-96c23514-f605-49e0-b270-850454b289f0","keyframes":{"transform":["translate3d(0px, 207.77784%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ffb1b237-a9e8-492e-8d80-8bf7dff0c377","keyframes":{"opacity":[0,1]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c6da48f2-9a6f-43a9-ae2e-b55a6537718f","keyframes":{"transform":["translate3d(0px, 630.97601%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a40c9223-e383-4f43-9634-67e9cd79fc49","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6d059d5b-9767-4082-a234-853791286444","keyframes":{"transform":["translate3d(0px, 620.20068%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Coins are designed primarily as digital currencies for transactions and value storage, while tokens serve various purposes, including utility in dApps, security, and governan ce. Image Credit: CoinMarketCap

Supply Creation

[{"selector":"#anim-c6593e58-f940-4cb9-b5f8-805e366ad5eb","keyframes":{"opacity":[0,1]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-228d6cdc-f443-4d60-8312-d73972525bcd","keyframes":{"transform":["translate3d(0px, 124.63093%, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-192641f8-8a22-44a7-9013-ecff08a1ca15","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dfae2324-9d0e-4979-a6b9-ff434cb5252d","keyframes":{"transform":["translate3d(0px, 227.03698%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-afb8e0bf-865c-4d65-a731-edf79df2b98c","keyframes":{"opacity":[0,1]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e7cfd5be-4f57-40ea-be37-81f05ad3c303","keyframes":{"transform":["translate3d(0px, 512.79428%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4de6af00-d393-424b-a9c8-aa56779620c0","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-12246c28-e388-43b5-962c-c45f4a8d89a3","keyframes":{"transform":["translate3d(0px, 620.20068%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Coins are typically generated through mining or staking, while tokens have their total supply created at launch. Image Credit: CoinDesk

Total Supply Dynamics

[{"selector":"#anim-20835b6e-43a4-4b92-b51a-c93461e72735","keyframes":{"opacity":[0,1]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8ec49abf-6411-4131-a98a-c700c1d11e79","keyframes":{"transform":["translate3d(0px, 117.49836%, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5aa3d3b7-9966-470c-b779-dbd6c53c24f3","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f1453186-4804-438e-97c4-a7836894463e","keyframes":{"transform":["translate3d(0px, 197.77783%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-db3ffb78-bb1c-4804-9749-4b70538d247d","keyframes":{"opacity":[0,1]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3bc9bfae-49ba-46cd-a2d9-fb2f8a031365","keyframes":{"transform":["translate3d(0px, 579.46088%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9f8580c3-076d-4e8c-ba87-6859d980cab2","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ad894671-d2f8-4d80-8bb4-73656ab09395","keyframes":{"transform":["translate3d(0px, 620.20068%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Coins have a fixed maximum total supply, whereas tokens can be created and distributed in various quantities based on project requirements. Image Credit: Toptal

Exchange Availability

[{"selector":"#anim-a1d420c8-260f-468f-a8bd-598f3173b308","keyframes":{"opacity":[0,1]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7e062ce0-d543-4b0d-9166-d4b3efbe9515","keyframes":{"transform":["rotate(-360deg) translate3d(0px, 123.74053%, 0) rotate(360deg)","rotate(-360deg) translate3d(0px, 0px, 0) rotate(360deg)"]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-50636d6f-45d3-4929-bb34-2d9846667c16","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4ee0db52-15d1-46f3-8f7e-f96323fefbfa","keyframes":{"transform":["translate3d(0px, 196.52784%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3c427ff2-4e34-4d86-b5ce-579be74d24e1","keyframes":{"opacity":[0,1]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-12843083-e110-4ddb-ab4e-0d905a683484","keyframes":{"transform":["translate3d(0px, 585.52139%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-83fef3d3-c691-4dc5-b681-d4ec0f792ebe","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3f74d2d6-be93-4eff-8844-e076d4782d25","keyframes":{"transform":["translate3d(0px, 620.20068%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Coins are often traded on major centralized exchanges (CEXs), whereas tokens have limited availability and tend to trade on decentralized exchanges (DEXs). Image Credit: Coinbase

Trading Volumes

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Examples

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Importance in the Crypto Ecosystem

[{"selector":"#anim-749d4a3c-f872-41ba-a340-54c45de790c2","keyframes":{"opacity":[0,1]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2facdb04-ebd0-493f-ae52-6602ce5aab12","keyframes":{"transform":["translate3d(0px, 115.34124%, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8a23d189-32cd-4b30-8b92-ea813448a2fa","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a17cd122-9e87-4849-98ca-52e217fc0a9f","keyframes":{"transform":["translate3d(0px, 200.27787%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ef22f0b2-8b61-48a3-b771-88b60ac58ec8","keyframes":{"opacity":[0,1]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5f26522a-b870-41d1-92f3-8a5ca2f3b20d","keyframes":{"transform":["translate3d(0px, 365.93807%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a992832a-25de-40cb-8789-45aea99b2871","keyframes":{"opacity":[0,1]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fc1a60a1-5ae1-42c8-9446-901d66945618","keyframes":{"transform":["translate3d(0px, 620.20068%, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":1300,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Understanding the distinction between coins and tokens is crucial for navigating the diverse landscape of cryptocurrencies and blockchain-based assets. Image Credit: Forbes

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